79 (iv) Termination benefits Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. Termination benefits are recognised as an expense when Heineken is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised if Heineken has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. Benefits falling due more than 12 months after the balance sheet date are discounted to their present value. (v) Share-based payment plan (long-term incentive plan) As from 1 January 2005 Heineken established a share plan for the Executive Board and as from 1 January 2006 Heineken also established a share plan for senior management (see note 29). The grant date fair value of the share rights granted is recognised as personnel expenses with a corresponding increase in equity (equity-settled), over the period that the employees become unconditionally entitled to the share rights. The costs of the share plan for both the Executive Board and senior management members are spread evenly over the performance period. At each balance sheet date, Heineken revises its estimates of the number of share rights that are expected to vest, for the 100 per cent internal performance conditions of the share plan 2010 - 2012 of the senior management members and the Executive Board and for the 75 per cent internal performance conditions of the share plan 2008 - 2010 and 2009 - 2011 of the senior management members. It recognises the impact of the revision of original estimates - only applicable for internal performance conditions, if any, in profit or loss, with a corresponding adjustment to equity. The fair value for the share plan 2008 - 2010 and 2( 09 - 2011 is measured at grant date using the Monte Carlo model taking into account the terms and conditions of the plan. Short-term employee benefits S ort-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A ability is recognised for the amount expected to be paid under short-term benefits if the Group has a present legal or c nstructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be e timated reliably. Provisions General orovision is recognised if, as a result of a past event, Heineken has a present legal or constructive obligation that can be estimated r iably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are measured at t e present value of the expenditures to be expected to be required to settle the obligation using a pre-tax rate that reflects current n orket assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage time is recognised as part of the net finance expenses. Restructuring orovision for restructuring is recognised when Heineken has approved a detailed and formal restructuring plan, and the restructuring is either commenced or has been announced publicly. Future operating losses are not provided for. The provision includes the •nefit commitments in connection with early retirement and redundancy schemes. Onerous contracts orovision for onerous contracts is recognised when the expected benefits to be derived by Heineken from a contract are lower an the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is tablished, Heineken recognises any impairment loss on the assets associated with that contract. neken N.V. Annual Report 2010

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2010 | | pagina 76